How GPT and Other LLMs Actually Work? (Architecture Explained Simply)



You've probably used ChatGPT, Claude, or another AI assistant and marveled at how naturally they understand and respond to your questions. They seem almost human in their ability to grasp context, maintain conversations, and generate coherent text. But what's actually happening under the hood?

Here's the fascinating part: These AI systems aren't programmed with rules about grammar or knowledge about the world. They don't have databases of facts they look up. Instead, they've learned patterns from reading vast amounts of text. They use those patterns to predict what words should come next.

The Revolution That Changed Everything: Transformers

Before 2017, AI language models were... not great. They could handle short sentences but struggled with longer contexts. They'd forget what you said three sentences ago. They couldn't understand how words at the beginning of a paragraph related to words at the end.

Then researchers at Google published a paper titled "Attention Is All You Need," introducing the transformer architecture. This single innovation transformed AI, it's why we went from clunky chatbots to systems that can write essays, code software, and hold surprisingly natural conversations.

What made transformers different? They introduced a mechanism called "self-attention" that lets the model understand relationships between words regardless of how far apart they are in the text. It's like giving the AI the ability to see the whole picture at once, rather than reading word by word and forgetting what came before.

The Magic of Self-Attention (Without the Math)

Here's the core innovation that makes LLMs work: self-attention allows every word to "look at" every other word and decide which ones are most relevant.

Let's break this down with a simple example:

Sentence: "The cat sat on the mat because it was comfortable."

When the model processes the word "it," self-attention helps it figure out what "it" refers to. It does this by:

→ Looking at all the other words in the sentence

→ Calculating relevance scores (which words matter most for understanding "it")

→ Assigning higher weights to relevant words ("cat" and "comfortable" get high scores)

→ Using those weighted connections to understand that "it" refers to "the mat" (because mats can be comfortable, making sense in context)

This happens for every single word, simultaneously, in parallel. That's why transformers are fast, they don't process words one at a time like older models did.

The "multi-head" part: The model actually does this attention calculation multiple times in parallel (typically 12-96 "heads" depending on model size), with each head potentially learning to focus on different types of relationships:

→ One head might learn grammatical relationships (subjects and verbs)

→ Another might learn semantic relationships (synonyms and related concepts)

→ Another might learn long-range dependencies (references across sentences)

Together, these attention heads give the model a rich, multi-dimensional understanding of the text.

From Words to Numbers: How Models Actually "Read"

Computers can't work with words directly, they need numbers. So the first thing an LLM does is convert text into embeddings: numerical representations that capture meaning.

Here's what's clever: words with similar meanings get similar numerical representations. In the model's internal space:

→ "happy," "joyful," and "delighted" cluster together

→ "king" and "queen" are close to each other

→ "Paris" and "France" have a relationship similar to "London" and "England"

These embeddings are learned during training, not programmed by humans. The model discovers these relationships by seeing how words are used together in millions of examples.

Then comes the layer stack. Modern LLMs have dozens or even hundreds of layers stacked on top of each other. Each layer refines the understanding:

→ Early layers learn basic patterns (grammar, common word pairs, simple syntax)

→ Middle layers learn more complex relationships (sentence structure, basic reasoning)

→ Later layers learn abstract concepts (topic, style, intent, nuance)

Think of it like repeatedly refining a sculpture. The first pass creates rough shapes. Each subsequent pass adds finer detail and smoother transitions, until you have something intricate and nuanced.

The parameter count you hear about (GPT-3 has 175 billion parameters, for example) represents all the learned weights and connections between these layers. More parameters generally mean the model can learn more subtle patterns and produce more sophisticated outputs, but also require more computational power.

Training: How Models Learn Language

Here's where it gets really interesting. LLMs aren't taught language, they learn it by example.

Phase 1: Pre-training (Learning Patterns from the Internet)

The model is given massive amounts of text—books, websites, articles, code repositories, trillions of words in total. Its training task is deceptively simple. Predict the next word.

Example:

→ Input: "The cat sat on the"

→ Prediction: "mat" (or "floor" or "couch")

The model makes a prediction, checks if it was right, and adjusts its internal parameters slightly to do better next time. This happens billions of times across vast datasets.

Why this works: To predict the next word accurately, the model must learn:

→ Grammar and syntax (what words can grammatically follow)

→ Factual knowledge (Paris is the capital of...)

→ Common sense (cats sit on surfaces, not in the sky)

→ Writing patterns (how arguments are structured, how stories flow)

No one programs these rules. The model discovers them by seeing patterns in how language is actually used.

This phase is unsupervised, meaning humans don't label the data. The model just reads text and learns patterns. This is crucial because it means you can train on virtually unlimited data. You don't need armies of humans labeling every sentence.

Phase 2: Fine-tuning (Teaching Specific Skills)

After pre-training, the model knows language patterns but isn't necessarily helpful, safe, or accurate. So it goes through fine-tuning:

Supervised fine-tuning: The model is given examples of high-quality responses to various prompts, learning to emulate that style and accuracy.

Reinforcement Learning from Human Feedback (RLHF):

→ The model generates multiple responses to prompts

→ Humans rank which responses are best

→ The model learns to produce responses similar to highly-ranked ones

→ This process repeats thousands of times

This is how models learn to be helpful assistants rather than just text generators. They learn to decline inappropriate requests, admit uncertainty, provide structured answers, and maintain conversational context.

Why Do LLMs Sometimes Get Things Wrong?

Understanding how LLMs work reveals why they have specific limitations:

Hallucinations: The Confidence Problem

LLMs generate text by predicting what sounds plausible based on patterns they've seen. They don't have a database of facts they're looking up. They're predicting text that resembles patterns in their training data.

Example: Ask about a fictional paper, and the model might generate a plausible-sounding title, authors, journal, and abstract, all completely made up. Why? Because it's learned the pattern of how academic papers are described, and it generates text matching that pattern.

The model doesn't "know" whether something is true or false. It only knows whether it fits linguistic patterns it's learned.

No Real Reasoning

Despite appearing intelligent, LLMs don't reason the way humans do. They're pattern-matching engines, not logic systems.

They're amazing at:

→ Pattern recognition

→ Following linguistic conventions

→ Generating text that sounds like reasoning

They struggle with:

→ Novel logical puzzles

→ Counting and arithmetic (though this is improving)

→ Truly creative solutions beyond recombining patterns they've seen

Knowledge Cutoff

LLMs only know what was in their training data. They can't access the internet in real-time (unless given that tool) or know about events after their training ended.

Context Window Limitations

LLMs have limited "working memory." They can only look at a certain amount of text at once (their "context window"). Older models could only handle a few paragraphs. Newer models can handle entire books, but even that has limits.

Why Does This Architecture Matters?

Understanding transformers and LLMs helps you:

Use them more effectively: Knowing they're pattern-matching systems helps you craft better prompts and understand their limitations

Evaluate their outputs critically: You'll recognize when they're likely to be reliable vs. when to verify information

Understand the AI landscape: Transformers power not just chatbots but translation, code generation, content creation, and analysis tools

Participate in conversations about AI: As these systems become more central to work and society, understanding how they function helps you engage with important discussions about their use, limitations, and governance

The Bottom Line

LLMs like GPT are sophisticated pattern-matching systems built on the transformer architecture. They learn language patterns from vast amounts of text, using self-attention mechanisms to understand context and relationships between words. Through pre-training on general text and fine-tuning with human feedback, they become helpful assistants.

But they're not magic. They're mathematical models predicting probable next words based on patterns. They don't truly understand, reason, or know facts. They generate text that resembles the patterns they've learned. Understanding this doesn't diminish how impressive these systems are. It actually makes them more impressive. The fact that such sophisticated language behavior emerges from "just" predicting the next word is remarkable.

The transformer revolution isn't over, it's just beginning. As models get larger, training techniques improve, and architectures evolve, we're only starting to explore what's possible when machines can understand and generate human language at scale. The key is using these powerful tools wisely, understanding both their capabilities and their limitations, and building systems that amplify human intelligence rather than replace human judgment.



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